Glossary · People and paperwork
Trustee
In short
A trustee is an individual or institution appointed to hold and administer assets for the benefit of another party, known as the beneficiary. They have a fiduciary duty to act in the beneficiary's best interest.
What it means in a deal
You might encounter a trustee if the seller's business assets are held in a trust, or if your personal assets (used for collateral) are in a trust. The trustee's authority to sell or pledge assets will need to be verified by the lender's legal counsel. Ensure all trust documents are readily available.
Related terms
Common questions about Trustee
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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